• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

No glamour but retail logistics are top value warehouse wonders

November 26, 2021
in Business
0
No glamour but retail logistics are top
value warehouse wonders
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter


Want some seasonal cheer in your portfolio? Then consider opportunities in retail logistics sheds that have sprung up to feed our online appetites

By Anne Ashworth For The Daily Mail

Published: 4:50 PM EST, November 19, 2021 | Updated: 17:35 EST, 19 November 2021










Black Friday is almost here, and Christmas is only 34 shopping days away.

If you want to bring seasonal cheer to your portfolio, you could consider the opportunities in the sprawling retail logistics steel sheds that line motorways and have sprung up close to towns and cities, to feed our online appetites.

For every £1billion spent online, an extra 1.36m square feet of space is required, fuelling a rush by retailers to rent the ‘shed’ warehouses owned by the logistics Reits (retail estate investment trusts).

Vast: Sprawling retail logistics steel sheds that line motorways have sprung up close to towns and cities, to feed our online appetites

Vast: Sprawling retail logistics steel sheds that line motorways have sprung up close to towns and cities, to feed our online appetites

Among the top players in the shed sphere are Segro, Tritax Big Box, AIM-listed London Metric and Warehouse. Meanwhile Urban Logistics, a specialist in ‘last-mile’ units (the final staging post on a parcel’s journey) is moving from AIM to the main market, capitalising on the clamour for sheds.

Online is not the only factor behind this boom, a trend accelerated by the pandemic that Savills forecasts could continue for another three years.

To the chagrin of shoppers, retailers may not offer big Black Friday discounts on electronic gadgets, amid a shortage of the semiconductors vital to these items. The dearth of these components is part of the wider global supply chain crisis affecting goods of all types, which retailers are trying to tackle by the re-shoring of storage and other operations.

As Richard Moffitt, chief executive of Urban Logistics explains: ‘The just-in-case approach has replaced the just-in-time philosophy of previous years.’

Shares in Urban Logistics are up 22 per cent since January, while Segro shares have risen 39 per cent. Also soaring is US firm Prologis, one of Amazon’s top landlords, which this month pledged to add to its extensive UK operations.

UK and overseas institutions seeking long-term income are among those snapping up these shares, with close to £11bn flowing into the sector this year.

One of the attractions of Reits is their ‘Waults’ of 13 years or more. The Wault – a key metric – is the ‘weighted average unexpired lease term’ of a shed. But are these institutions being lured into ludicrously overpriced assets?

Shares in Tritax Big Box, whose clients include Marks & Spencer and Next, stand at a 26 per cent premium to the trust’s net assets, for example. Other Reits are also at a premium. Or are logistics shares reassuringly expensive, if only because of the yields on offer?

These may be lower than before, but still compare favourably with cash or gilts. Richard Williams of Quoted Data, the investments analysis group, says the lack of available space makes it difficult for tenants to negotiate down rents: ‘It’s a landlords’ market.’

The logistics warehouse used to be seen as commercial property’s ugly duckling, but its transformation into its most glamorous activity bemuses even those who admire the sector’s vibrancy.

These buildings can be green – their flat roofs are ideal for solar panels – but they are seldom architectural masterpieces. Quoted Data’s Williams says it is hard to see a cloud on the horizon. A special tax on online retailers is possible: ‘But exactly what its impact would be is unclear.’

The sentiment surrounding sheds is even more optimistic than when this column highlighted the potential in January, including in Europe where online shopping is growing.

Inspired by this, I put some money into Aberdeen Standard European Logistics Income trust whose premium is 7 per cent. Williams sums up Europe’s appeal: ‘A new cohort of the population and many retailers overcame barriers to online retailing out of necessity and have become comfortable in buying or selling goods in this manner.’

Darius McDermott of Fund Calibre is also an enthusiast for Europe. He says: ‘In our in-house managed range of funds we hold Tritax Eurobox whose managers are experts in the area through Tritax Big Box. They are doing a good job in managing the assets, adding solar panels to roofs and expanding where possible to give investors a bit of capital uplift alongside the income.’

Tritax Eurobox is at an 8 per cent premium and the yield is 3.75 per cent. Like its UK counterparts, this may not be your idea of a bargain buy.

It’s worth noting that institutions view these trusts as a bet on long-term change in retailing. Although these Reits are on my Christmas wishlist, I am going to wait around for some weakness in their share prices.

Advertisement

Share or comment on this article:

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Tags: glamourLogisticsretailtopvalueWarehousewonders
Previous Post

Manchester United in the hunt for Fiorentina phenomenon Dusan Vlahovic

Next Post

Stressed South Koreans Are Paying to Just Sit in a Room and Stare Into Space

Related Posts

Paysafe Limited (PSFE) CEO Philip McHugh on Q2 2021 Results – Earnings Call Transcript
Business

Regions Financial Corporation 2022 Q1 – Results – Earnings Call Presentation (NYSE:RF)

This article was written byFollowSeeking...

Read more
How to save money on subscriptions and not lose films, TV and music
Business

How to save money on subscriptions and not lose films, TV and music

As the cost of living...

Read more
Business

A day in the life of (almost) every vending machine in the world – podcast | News

Support The Guardian The Guardian...

Read more
Ex-Colgate researcher who stole toothpaste formulas worth millions of dollars is sentenced to 21 months
Business

Ex-Colgate researcher who stole toothpaste formulas worth millions of dollars is sentenced to 21 months

This case left a bad...

Read more
LafargeHolcim: A Follow Up Note On Q1 Performance (OTCMKTS:HCMLF)
Business

LafargeHolcim: A Follow Up Note On Q1 Performance (OTCMKTS:HCMLF)

yullz/iStock Editorial via Getty Images...

Read more
Load More
Next Post
Stressed South Koreans Are Paying to Just Sit in a Room and Stare Into Space

Stressed South Koreans Are Paying to Just Sit in a Room and Stare Into Space

  • Trending
  • Comments
  • Latest
The #1 Best Supplement to Keep Your Bones from Aging, Says Dietitian — Eat This Not That – Eat This, Not That

The #1 Best Supplement to Keep Your Bones from Aging, Says Dietitian — Eat This Not That – Eat This, Not That

Horror as goat gives birth to ‘humanoid kid’ with baby-like face

Six times actors really romped in sex scenes that make 365 DNI look tame

Six times actors really romped in sex scenes that make 365 DNI look tame

Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

The twin paradox shows us what it really means for time to be relative – Space.com

The twin paradox shows us what it really means for time to be relative – Space.com

Stunning timelapse videos show the Super Flower Blood Moon in bloom – Space.com

Stunning timelapse videos show the Super Flower Blood Moon in bloom – Space.com

The InSight Mars Lander Mission Will End This Year, NASA Says – Gizmodo

The InSight Mars Lander Mission Will End This Year, NASA Says – Gizmodo

Tiger Woods backs PGA Tour and criticises Phil Mickelson comments – The Guardian

Tiger Woods backs PGA Tour and criticises Phil Mickelson comments – The Guardian

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

The twin paradox shows us what it really means for time to be relative – Space.com

The twin paradox shows us what it really means for time to be relative – Space.com

Stunning timelapse videos show the Super Flower Blood Moon in bloom – Space.com

Stunning timelapse videos show the Super Flower Blood Moon in bloom – Space.com

The twin paradox shows us what it really means for time to be relative – Space.com

The twin paradox shows us what it really means for time to be relative – Space.com

Stunning timelapse videos show the Super Flower Blood Moon in bloom – Space.com

Stunning timelapse videos show the Super Flower Blood Moon in bloom – Space.com

The InSight Mars Lander Mission Will End This Year, NASA Says – Gizmodo

The InSight Mars Lander Mission Will End This Year, NASA Says – Gizmodo

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....